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If a firm has a degree of operating leverage (DOL) that is greater than 1.0, then it means that a 1.0 percent change in _____

If a firm has a degree of operating leverage (DOL) that is greater than 1.0, then it means that a 1.0 percent change in _____ will cause a change in earnings before interest and taxes (EBIT) that is _____ 1.0 percent.

a.

earnings per share; greater than

b.

fixed costs; less than

c.

net income; greater than

d.

sales; greater than

e.

net operating income; less than

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